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The Need for Cultural Intelligence

An Analysis of Asiana Airlines' response to the Crash Landing of Flight 214

Case Study Competition

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Table of Content

I. Abstract …………………………………………………………………………..3

II. Case Study ………………………………………………………………………..4

A. Overview ………………………………………………………………...4

B. History …………………………………………………………………...6

C. Crisis Communication Strategy …………………………………………9

D. Stakeholder response in United States ………………………………....12

E. Cross Cultural Communication ………………………………..……….13

III. Cultural Intelligence ………..…….……………………………………………..15

IV. Appendices ……………………………………………………………………...17

V. References ………………………………………………………………………23

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I. Abstract

On July 6, 2013, Asiana Airlines’ Flight 214 crashed while attempting to land at the San

Francisco International Airport. This case addresses the crisis communication efforts Asiana undertook

with key stakeholders in the U.S. in the wake of the crash. It assesses the social and traditional media

communication activities of Asiana in the U.S. and how cross-cultural norms affected perceptions of this

communication. The crash demonstrates the need for corporate communication professionals at multi-

national companies to have cross-cultural competence and training. More precisely, the case considers

the theory of cultural intelligence, which is defined as the ability to recognize and comprehend different

beliefs, practices, attitudes, and behaviors of a group and then apply that certain cultural knowledge to

attain your goals - whether those goals are political, business or otherwise. The case is ultimately valuable

to all global companies building their cross-cultural acumen.

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II. Case Study

A. Overview

On July 6, 2013, 291 passengers boarded

a Boeing 777 on Asiana Airlines’ Flight 214

without a worry in sight. Passengers were flying

from Incheon, South Korea to San Francisco,

California. What was thought to be a regular

sunny day turned into everyone’s nightmare. At

11:27 a.m., the flight crashed while attempting to

land at the San Francisco International Airport.

Out of 291 passengers, there were three fatalities

and over 180 injured.

Passengers and witnesses alike were shaken. According to passenger Lee Jang Hyung, who was

flying with his wife, baby, and parents-in-law, said, "Suddenly, the plane's tail part hit the ground and the

aircraft bounced upwards and then bam, it hit the ground again. This time it felt like the entire plane hit

parallel, but tilted to the left. That pressure was huge. Very strong. I saw luggage fall from the top. And

the plane gradually stopped. Until then, there was no warning," Hyung said. Hyung called it a close call

and is grateful that his family survived.

Timeline of Events as Flight 214 Makes Final Approach i

● 11:27 a.m.

○ 8 seconds before impact - Call in cockpit for increased speed (Flight 214 travelling at 112

knots at 125 feet above the ground)

○ 3 seconds before impact - Engines at 50% power and engine power increasing (Flight 214

travelling at 103 knots)

○ 1.5 seconds before impact - No distress calls are made asking air traffic control to abort

the landing. From cockpit recordings, the pilot is heard saying “go around.”

● 11:30 a.m. - Emergency exit slides are deployed.

● 11:35 a.m.

○ Rescue crews race to the aircraft.

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○ It is noticed that at two of the exits, emergency exit slides incorrectly inflated inside the

aircraft slides inflated inside the aircraft, which pinned some of the flight attendants to

the wall inside.

● 1:00 p.m.

○ Injured passengers and crew are taken to the hospital, while the critically injured are

taken sooner.

○ "The most critically injured people came right away. Some of them had burns, they had

fractures, they had internal injuries, internal bleeding, also head injuries ...we also saw

spinal injuries," said San Francisco General Hospital and Trauma Center spokeswoman

Rachael Kagan.

● 4.18 p.m.

○ The first two fatalities are confirmed: Wang

Linjia and Ye Mengyuan (both 16-year-old

students from China). Mother is seen crying

over two daughters.

● 7:47 p.m.

○ All passengers and crew are accounted for

and NTSB (National Transportation Safety

Board) launches full safety investigation.

The Cause

Immediately following the crash landing, individuals, news outlets, and key stakeholders like the

NTSB scrambled to find the cause of the crash. There was much speculation around the actual cause.

Initially, mechanical error was rumored to be the cause. The Huffington Post reported that the key device

control called the automatic throttle might have malfunctioned, which might not have sent enough power

to the engine to abort the landing.ii Since then, the NTSB has ruled out mechanical error. However, most

of the speculation placed blame on the pilots. Fatigue was ruled out immediately, which left many news

outlets and individuals on social media turning to the pilots’ experience. According to the Wall Street

Journal, many have argued that the pilots lacked manual flying skills.iii Pilot Lee Kang Kuk had only 43

hours of flight experience with a Boeing 777, which is the equivalent of nine flights. When the plane

crashed, Lee Kang Kuk was flying under the supervision of Pilot Lee Jeong-min, who is considered a

veteran pilot. There is speculation that the pilots ignored warning signals in the cockpit.iv Airline officials

have refuted the allegation that the pilots were not experienced enough, stating that the pilots have had

thousands of hours of prior training.v There have also been differences between the pilots’ recollection of

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the crash and the cockpit recordings. Whatever the reason of the crash, what is known is that there was

not enough power available to abort the landing.vi What really happened then, you ask?

While the official NTSB investigation can take six to nine months to determine the result of the

crash, there are a few things known. In the final moments of the regular 11-hour flight, Flight 214

experienced what is called a “hard landing” that turned out to be short of the actual landing strip. The

aircraft was traveling below landing speed and was too low as it approached the threshold. The plane was

roughly 80 feet away from the runway when it crashed. A piece of the tail clipped the seawall at the end

of the runway, which caused the Boeing 777 to hit the tarmac hard.vii Within 90 seconds, a blaze ignited

close to the bay waters and debris scattered immediately (See Appendix A). According to NTSB

Chairman Deborah Hersman, the most seriously injured passengers were sitting in the rear of the aircraft.

Two of the fatalities occurred from the actual flight. The third fatality, according to San Francisco Police

Offer Albie Esparza, was completely covered in flame-retardant foam when a fire truck ran over the

student as it was trying to fight the fire. An autopsy-report done by San Mateo County Coroner Robert

Foucrault confirmed death by injuries consistent with the fire truck.viii At the end of the day, much is still

left to be determined, as the NTSB is still reviewing cockpit recordings, the aircraft mechanics, and

testimonials from survivors.

On December 11, 2013, the NTSB announced that the hearing has adjourned however the

investigation remains ongoing. According to the information the NTSB released that same day, the

veteran pilot, Lee Kang Kuk had momentarily adjusted the power without realizing the plane’s computers

then assumed he wanted the engine to remain at idle. According to NTSB documents, in some

combinations of auto-throttle and autopilot settings, such as during Flight 214’s approach to SFO, the

system becomes dormant.ix

The two pilots, Lee Kang Kuk and Lee Jeong-min, still work for the airline however they have

not flown since the accident. On January 1, 2014, Kim Soo Cheon took over as CEO. A spokesperson for

the airline said that the “personnel change has nothing to do with the accident.”x To strengthen pilot

training the airline has hired Akiyoshi Yamamura, a veteran Japanese pilot and safety expert, as Chief

Safety and Security Manager. This is Asiana’s first foreign hire in its 25-year history.xi

B. A History of Asiana Airlines

Asiana Airlines Company Background

Asiana Airlines, Inc. is one of South Korea’s two major airlines, along with Korean Air. Asiana

Airlines, the smaller of the two airlines, was founded on February 17, 1988 and is headquartered in Seoul,

South Korea. The company has a fleet of 80 aircrafts as of April 2013. Asiana serves 12 cities on 14

routes domestically, 24 countries and 73 cities on 93 routes internationally. The company provides service

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routes for international cargo to 14 countries and 29 cities on 27 routes.xii As of August 2013, the airline

staffs 10,381 employees and maintains an average of 15 million passengers annually. The airlines

domestic hub is located at Gimpo International Airport and its international hub at Incheon International

Airport, which is 43 miles from central Seoul. Asiana Airlines is also one of the 13 primary sponsors of

the South Korean national football team.

Korean Air, which was privatized in 1969, monopolized the South Korean airline industry until

Asiana was founded in 1988. Asiana Airlines, originally known as Seoul Air International, was not

formed to promote liberalized market conditions but rather because of

the pressure from potential shareholders along with chaebols, family

controlled industrial conglomerates in South Korea, that wanted to

compete.xiii Asiana Airline’s parent company is Kumho Asiana Group. According to an article in the

Journal of Air Transport Management, the Park family closely holds the “Kumho Chaebol.”xiv Kumho

Asiana Group was founded by Park In-cheon in 1946 and currently, the Chairman of the group is Park

Sam-Koo.xv

Asiana Airlines Corporate Philosophy

Asiana Airlines’ corporate philosophy appears on the company website as follows:

“The highest value of Asiana Airlines is to achieve customer satisfaction with the maximum safety and

service. As an international airline, we will provide the greatest flight service for each one of our

customers in the safest way. Asiana Airlines' goal of a beautiful future through thorough customer

satisfaction management will continue.” xvi

According to Star Alliance, a global grouping of carriers, Asiana Airlines adopted the term

“uncompromising safety” as its mission statement with the aim of guiding every thought and action of its

employees.xvii To maintain this promise, Star Alliance goes on to explain that Asiana upholds the most

modern fleet worldwide and that the airline was the first in the world to be granted ISO 9002 certification

on aircraft maintenance, which means that that airline meets a certain criteria for quality assurance in

production, installation, and servicing. xviii

In February, just four months before the fatal crash at SFO, Asiana Airlines celebrated its 25th

anniversary and its 10th anniversary of joining the Star Alliance, the largest airline code-share alliance in

the world, which allows passengers to accumulate airline miles. xix Last year, Business Traveler magazine

called Asiana Airlines the "Best Overall Airline in the World."xx Consulting service Skytrax, based in the

United Kingdom, awarded Asiana "Airline of the Year" in 2010.xxi

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For the third quarter, Asiana reported its first profit in 2013. The July-September quarter earnings of

$82.8 billion won ($77.8 million) were up 3.3% over the year earlier. But, the third-quarter operating

income plunged 42% to $63.4 billion won while sales dropped 3% to $1.52 trillion won.xxii Asiana

Airlines makes more than half of its revenue from overseas flights. xxiii However, this year the company’s

passenger business was hit by lower demand for flights from Japan to South Korea because of the weaker

yen and bombast from North Korea threatening nuclear war. Asiana Airlines remained in the red for the

first nine months of this year, with a net loss totaling $45.6 billion won.xxiv This is unrelated to the plunge

following the Flight 214 crash.

Past Crises

The company has experienced two other major fatal crashes in its 25-year history. Asiana

Airlines’ first major incident was in 1993 when Flight 733 - a Boeing 737-500 - crashed in poor weather

while approaching Mokpo airport in South Korea, killing 68 out of 116 occupants, including two crew

members. In July 2011, a cargo plane - a Boeing 747-400F - slammed into the East China Sea, killing the

only two people on board. The plane crashed due to a reported in-flight fire en route from Seoul's Incheon

International Airport to Shanghai Pudong International Airport in China.xxv

Korean Air also experienced numerous accidents during this period of time. In 1997, a Korean

Air flight crashed while approaching Guam Island during a rainstorm killing 228 people. In April 1999, a

Korean Air flight crashed after takeoff from Shanghai killing 8 people, and another crash in December

1999 after takeoff from London killing four. Korean Air experienced a third crash in 1999, which was not

fatal, when the jet skidded off the runway while landing in Pohang, South Korea.xxvi

After these crashes and fatal accidents in South Korean commercial aviation, the Federal Aviation

Administration downgraded South Korea's safety system's ratings in 2001, saying the country's aviation

authority did not comply with the International Civil Aviation Organization's standards. After changes

were made, the restrictions were lifted in December of that year.xxvii

(Photo Source: Wall Street Journal, “Asiana’s Response to San Francisco Plane Crash Draws Notice.”)

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C. Crisis Communication Strategy

With much information still to be determined, it is important to address the crisis communication

efforts with Asiana Airlines’ key stakeholders in the United States: the media/general public,

victims/families, and employees.

Within a minute of the crash, Krista Seiden, who

was boarding another plane, posted a photo on Twitter of

the incident. Less than 20 minutes later, a stream of

journalists started using the live feed on Twitter to get

immediate updates on what happened. Journalists from

places like Bloomberg News and NPR made multiple

attempts via Twitter to ask for an interview with Krista.

Within a day of the incident, Krista’s photo and tweets

were quoted in thousands of articles. Krista was not the

only person posting photos via social media.xxviii

Some of the passengers used social media to get word

out that they were alive and to report on the crash. A

passenger named David Eun posted the first photo via

Twitter less than a few hours after the incident. David

stated, “I just crash landed at SFO. Tail ripped off. Most

everyone seems fine. I'm ok. Surreal…”xxix People flocked to social media outlets to find information

about Flight 214. According to Wall Street Journal, David Eun’s tweets prompted a flood of well-wishes

and questions.xxx Hashtags such as #SFOcrash were utilized. People went to social media to find news

updates and some also acted as news reporters themselves. Everyone was searching for information.

What was lacking was information from credible organizations such as Asiana Airlines, NTSB, or

Boeing.

Communication to Media/General Public

Response finally came a little

after 1 p.m. PT. Boeing and the NTSB

were the first entities to respond via

Twitter. The entities recognized the

situation and informed viewers that they

were gathering information. By

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approximately 3:50 p.m., the NTSB held a press conference while also doing continuous update with

photos to Twitter. In less than an hour after this, the White House released a statement stating,

“[Obama's] thoughts and prayers go out to the families who lost a loved one and all those affected by the

crash.”xxxi At this time, everyone was still turning to Asiana Airlines’ social media feeds for a live update.

Around this same time as the White House Statement, Asiana Airlines finally joins in on the

action. Asiana Airlines released its first statement via Twitter giving its thoughts and prayers to the

passengers and crew on the flight. Seven

hours after the flight, Asiana releases a press

statement via Twitter, Facebook, Google+,

and the company website (See Appendix

B). The press release states that Asiana

Airlines is working to determine the cause

of the incident and that the airline is

cooperating with government agencies

during the investigation. The release finishes with Asiana Airlines claiming that nothing else can be

confirmed at that point in time. Since then, four additional press releases were posted for the general

public and media to view. Asiana Airlines did not respond to any comments posted via social media and

declined any media attention outside of Korea. On social media, since July 13th, Asiana Airlines has

returned back to its regular communication strategy, which consists of many consistent customer service

support and promotion on flights, contests, and new technology. The CEO of the airlines has since then

stated his plans to improve the training for its pilots, but has not given specifics as to what those plans are

due to the ongoing investigation at this point. Besides the changes made to personnel, communication is

forthcoming on the airlines’ plan of attack moving forward.

Communication to the Victims/Families

Asiana Airlines’ crisis communication strategy in the following days replicated the slow response

rate of day one. The airline created a toll-free emergency hotline for passengers and families to find out

updates. However, the hotline was not put up on Asiana Airlines’ website until nine hours after the crash

landing. According to the Wall Street Journal, “It took three days for Asiana Airlines to dispatch its chief

executive and a team of staffers to Saturday's plane-crash site at San Francisco International Airport,

where the executive was set to apologize, meet with federal officials and call for a thorough

investigation.”xxxii Asiana Airlines has also rejected offers to form a communication team in the United

States to help respond to questions from families or the media. When the airlines hotline was flooded

with calls, Asiana Airlines had to set up additional lines to call. According to CBS News, the Associated

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Press said that Asiana Airlines originally “posted an

automated reservations number and, changed the number

several times in the following days.”xxxiii From July 6th

through July 13th, five press releases had been posted on

the company website. The releases provide Asiana

Airlines’ condolences, emergency hotline information,

and brief information as to how the airline is servicing

the victims. The latest press release offers the airlines’ condolences for the first two fatalities of the crash.

(See Appendix C). CEO, Yoon Young-Doo is noted saying:

“My deepest condolences go out to the grieving family and loved ones of this passenger and to all

those who have been affected by this regretful situation. We will devote all attention and efforts to support

the families of the victims and expedited recoveries for the other injured passengers.”xxxiv

The Facebook and Twitter posts on Asiana Airlines’ page reiterates hotline contact information and

directs viewers to the company website to view the press releases (See Appendix D). Visible information

regarding Flight 214 concludes after July 13th.

Other communication and services were provided to the victims and families of the crash, but

many news outlets or even the airlines did not promote this information. Necessary airfare and lodging

was provided to passengers and families with the support of United Continental Holdings Inc., who

opened its airport lounges and helped provide emergency assistance. The airline relied heavily on United

in the aftermath. United even sent representatives to hospitals to act as liaisons to those injured.xxxv

Temporary passports were also provided to passengers who lost it in the crash. In some cases, family

members of the extremely injured were flown to the United States. The airlines worked to provide

medical, lodging, meals, translation, and transportation services to families.xxxvi Financially, the airlines

provided a great deal of support.

Communication to the Employees

Information available about communication related to employees in the crash and on employees

actions following the crash is very miniscule. Besides an initial tweet offering the airlines’ thoughts and

prayers to the passengers and crew, the employees affected are not mentioned. There is also no mention

of a settlement. However, there are a number of statements from the airlines defending the pilots’

experience when it is questioned. Other than diffusing rumors, not much praise or information is given

on the employees’ actions taken following the crash. The press releases acknowledge the number of

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crewmembers on board the aircraft at the time of the crash. At the July 9th press conference, Asiana

Airlines communicated that employees were working around the clock to assist passengers and that more

employees would be on-site soon to provide aid. The communication regarding employees comes off

with a sense of urgency. It gives the impression that the airlines and its employees will “spare no efforts”

to help the passengers. However, it does not provide information as to how the affected crewmembers

responded during the crash or how support will be given to them.

D. Stakeholder Response in United States

The United States did not respond well to Asiana Airlines’ crisis communication strategy to the

crash landing for a number of reasons. First, upon his arrival in the U.S., Asiana’s President and CEO,

Yoon Young-doo, declined to speak to the South Korean and U.S. reporters who mobbed him at the

airport, and no one spoke on his behalf, giving the impression he had something to hide. According to

Glenn F. Bunting, who runs G.F. Bunting, a San Francisco-based strategic communications company that

specializes in crisis management, argues that there is a need for the media spokesperson, in this case the

CEO, to assure the public that everything is going to be okay and that the airlines is safe.xxxvii Jonathan

Bernstein, a U.S.-based consultant and crisis manager, compared Asiana's response to that of JetBlue

Airways Corp., which came under fire in 2007 for keeping passengers on the tarmac during rough

weather. Jetblue’s then-CEO, David Neeleman, "got out there," Mr. Bernstein said. "He put a face, a real

human compassionate face on the crisis, and I think Asiana needs to find someone who can speak for

them like that."xxxviii In this case, Asiana failed to address the needs and concerns of its stakeholders in

the United States. Some argued that Asiana Airlines took "an inordinate amount of time" to respond to the

crisis.xxxix On the other hand, a number of organizations like the SFO, NTSB, Boeing, and other

influential journalists were praised for the constant and immediate updates posted on their social media

sites regarding Flight 214.

While Asiana Airlines’ communication with society did occur in less than 24 hours, its

communication was scrutinized because Asiana Airlines’ response came after other organizations had

already provided multiple updates. Mary Kirby, a social media savvy Facebook user, posted:

“The fact that Asiana Airlines has not yet made a statement on Twitter or Facebook about the

777 crash at the SFO is unacceptable.”xl

Within a day, Asiana Airlines’ “Facebook fan engagement increased by 50%, while Twitter followers

grew by 4,000...”xli However, as previously stated, Asiana Airlines did not utilize this reach a great deal to

get information out about the crash landing. Asiana Airlines did not respond to comments or concerns on

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any social media account. Asiana Airlines was also scrutinized for the delay in dispatching the CEO to

speak to the media and visit the location of the incident. In a country where companies have crisis

communication plans already prepared, many felt that Asiana Airlines’ response was extremely slow. As

said in the Wall Street Journal, Asiana Airlines’ approach “is foreign to many U.S.-based crisis managers,

who help clients develop elaborate plans and targeted messaging far in advance of potential problems.xlii

What concerned Americans characterized as a lack of immediate action on Asiana Airlines’ part,

only further developed into frustration. Asiana Airlines communication even after its initial response was

looked at negatively for the lack of posts. For example, Asiana Airlines only posted ten times on

Facebook, and most of it leads people to the website to view press conference information or the

emergency hotline number. With this, the airlines declined to speak to any media journalists outside of

Korea immediately following the crash. There was instant media backlash from many influential

journalists and a large amount of bloggers in the United States.

The victims/families were also not thrilled with the airline. Families were completely dependent

on the airlines following the incident and complaints started to arise. Haijun Xu, a passenger on Flight

214, was told by Asiana to not speak with the media. His daughter cried, “We did not get any help except

the $400 emergency fee” that would cover the basics such as food. While the family was provided

lodging, the family was forced to sleep three people to a bed due to the amount of lodging space provided

to them.xliii Many families like the Xus have decided to sue Asiana Airlines. The Aviation Disaster

Family Assistance Act was passed in 1996. The law requires carriers—now, both foreign and domestic—

to regularly file with the NTSB detailed plans for assisting families of those injured or killed in plane

crashes. xliv Federal agents are now investigating whether or not the airlines met its legal obligation to

support the passengers and families of Flight 214.

E. Cross Cultural Communication

There is undoubtedly room for improvement when it comes to Asiana Airlines’ focus on

providing reassurance to nervous flyers in the aftermath of a fatal plane crash. In the hours after the crash,

Asiana was slow to respond to the overwhelming need for information at the rate at which the United

States is accustomed. Why did the airline provide such a perplexing response, based on U.S. norms, to

Flight 214’s crash?

Directly after the accident and while still in Korea, Asiana’s President and CEO Yoon Young-doo

made several public apologies, along with statements about the experience of the plane's pilots. Yoon

Young-doo held a news conference in Seoul with several board members present explaining what the

company knew, offering condolences for the victims, and defending the airlines' pilots and planes.xlv

However, the Seoul-based airline issued few statements in the U.S. and declined to arrange for any media

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representatives outside of Korea. The carrier said it has received offers from stateside communications

companies eager to help manage the crisis and had an uninterested response.

"It's not the proper time to manage the company's image," said an Asiana representative in

Korea, when asked about the company's response to outside assistance. xlvi

Jee-eun Song studies South Korean culture as a lecturer in Asian studies at UC Berkeley and told San

Jose Mercury News that Asiana officials may have thought its initial apology to victims and families in

South Korea would “cover them in San Francisco in the days following the crash.”xlvii

On July 12, the Fox affiliate in Oakland, KTVU, reported on an anonymous tip, which turned out

to be an embarrassing gaffe. The KTVU anchor identified the pilots in its noon broadcast over the

weekend as “Sum Ting Wong,” “Wi Tu Lo,” “Ho Lee Fuk,” and “Bang Ding Ow” – obvious racially

insensitive names. They cited the NTSB as their source. It turns

out an NTSB intern answered the phone when KTVU called and

mistakenly confirmed the fake pilot names.xlviii Asiana threatened

to sue the television station after the false report but dropped

those plans a few days later. Several critics of Asiana Airlines’

crisis management found the company’s uproar towards KTVU

out of place. The airline should have been concentrating on the

passengers of Flight 214 and its other nervous travelers, but the airlines focus seemed to be on the Bay

Area television station that fell victim to a humorless prank.xlix

Business Insider reported that the airline also attempted to silence the passengers of Flight 214.l

The Xu family, previously referred to, was among those passengers and featured in a story on CBS This

Morning. In the interview that took place at the hotel room the family was provided, the Xu family told

the CBS reporter that the airline told them not to speak with media. The CBS reporter had to tape this

interview with his smartphone because airline security called the police when they spotted his camera

crew in the hotel lobby. The journalist was eventually allowed upstairs but constrained to using his

iPhone’s camera.li

Asiana Airlines’ crisis communication tactics in the aftermath of Flight 214 may seem strange

and its priorities out of place. But, perhaps Asiana’s response is not as strange as it is just different from

the U.S. norm. Simply saying, Korean corporate culture contrasts with several corporate practices in the

Western world. Koreans responded well to the efforts Asiana took.

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South Korean Corporate Culture

James Chung, chief partner at Strategy Salad, a crisis communications firm based in Seoul said

that “Few big Korean companies take outside counseling if a crisis happens.” That contrasts with

common practice in the U.S., where crisis managers help clients develop on plans and messages for

dealing with problems far in advance. South Korea’s top managers hesitate to use outside counsel because

they think it could interfere with management and decision-making processes. Chung told the Wall Street

Journal, “They think ‘Why do we need outside help when we have strong internal public relations?’”.lii

South Korea's corporate culture, like the Korean economic boom of the last few decades, is

much-studied. Part of it has to do with the way South Korea's economy grew: with a heavy guiding hand

from the state. liii The government helped a number of once-small companies consolidate into massive

conglomerates known as chaebols, which are often family-run and have since accumulated tremendous

political and economic power. According to a 2005 article on chaebols in the Journal of Consumer

Psychology, "Korean consumers have a strong attachment to chaebols with which they associate quality

and, in turn, trust," with the chaebols serving as a kind of extension of Confucian ideals of the family.liv

Thus, Asiana is treated as a family business by its employees and South Korean consumers. That sense

of family loyalty may be why South Koreans were eager to defend or sympathize with Asiana after the

crash.lv

The “Kumho Chaebol”, also known as the Kumho Asiana Group, owns Asiana Airlines.lvi In

efforts of upholding quality and trust associated with chaebols, Yoon and the board’s first response to the

public was a press conference where they offered a solemn apology to the victims and defending the

pilots. Initially, Asiana Airlines may have resisted the public’s demand for information out of respect for

the victims. To a U.S. audience, this may have seemed like a muted response.

III. Cultural Intelligence?

Asiana Airlines must alter its tactical view on cultural intelligence if they hope to survive in this

global economy. Cultural intelligence is defined as one’s ability to function in places that are

characterized by cultural diversity. Cultural intelligence is the ability to build relationships with different

cultures and respond effectively to them, which Asiana Airlines failed to do with people in the United

States. This case displays the importance of cross cultural sensitivity and the need for preparedness during

a crisis in our global economy. Cross-cultural challenges have become increasingly more common and

thus more important to look into for large corporations. This is due in large part to globalization and

cross-national business. Stakeholder differentiation across countries in this crisis would have allowed the

airlines to create an altered response to the United States and avoided such backlash.

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In order to possess this idea of cultural intelligence, Asiana Airlines must first accept and adapt to

new media. With more and more people using social media on desktops and on mobile devices, access to

news has become instant. Social media has become so crucial to communication teams that employers

have started recruiting job seekers highly experienced with social media. In 2012 alone, “over 43% of

people aged 20-29 spent more than 10 hours a week on social media sites.”lvii This has only increased in

the past year. Social media has an influence on what people think and what they view. This case has

offered an in-depth look into the rising importance of social media in the United States and the need for

crisis communication teams. Asiana Airlines failed to realize the vital role social media played in

Americans’ perception of the airlines response to the crash.

Asiana Airlines is now seeing the results of its crisis communication response. The stock price

took a big hit. Within a day, Asiana Airlines’ stock price dropped by 5.8% and within a month, it dropped

by 6.64%.lviii The company reached an all-time low on April 12, 2013 and is still struggling to bring back

the stock to what it used to be. The impact of the communication will not only affect the shareholder

value.

There is also now a lack of trust with the airline and an image concern in the United States.

Asiana Airlines’ code, OZ, embodies the airlines mission statement: “uncompromising safety.” However,

the airlines reputation has taken a hit as many have decided to switch carriers due to the airlines inability

to live up to its mission. According to Bloomberg News, one frequent flyer of the airlines stated that she

will switch to Korean Air due to safety concerns for her children.lix This is the second crash since 2011.

Moving forward, Asiana Airlines is faced with the task of repairing and restoring the credibility the

airlines once had as being one of the safest airlines to fly with.

Nonetheless, Asiana Airlines is not the only company to avoid adapting to different cultures.

There is a great need for more research on cross-cultural corporate communication. Literature on cross-

cultural communication is miniscule all-around. The crisis will serve as a teaching example for the future

and shed light on the need for cultural intelligence.

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IV. Appendices

Appendix Alx

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Appendix B- Released via Social Medialxi

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Appendix C- Asiana Airlines’ Press Releases

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Appendix D- Asiana Airlines’ Communication via Twitter and Facebook

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V. References

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